It's not my money until move-out (if the situation warrants).I would advise that deposits be increased as rents go up (as allowed by law; every state is different); otherwise, you may be stuck with a big deficit at the end of a tenancy.

@Zack Gerson I'm a little unsure as to why the financing company is giving a 25yr commercial versus a 30 yr. residential, as its a 4 plex and not a 5+ unit where a commercial loan would be warranted.

We prefer North Shore closer to SJU airport, but will look further if a deal or property warrants a look.

In addition, condo's that are non-warrantable can negatively impact your lending capabilities.  

Instead I gave the cops a key to the front door for them to do a search warrant and told them to check the vent.

Joe,Looks like Dan missed teh fact you are in search of private money only not HML as they are expensive and the terms are steeper.You can expect to pay anywhere from 3 points on the very low end to 10 points on the high end and anywhere from 12% to 18% for HML.I have private money that I sue and generally pay 10%-12% but do pay as high as 15% on occassion when the investment warrants it.

If you are interested in this property, 50% value offer is not going to warrant a response in today's market. 

Condo prices are actually appreciating faster than single family right now, but I expect that will flip this spring.I would encourage you to get an insurance agent that can quickly underwrite properties and a lender that can find out if the complex is warrantable or non warrantable before you make offers or at least during your inpsection period. 

It became viewed as a shady strategy, but was that warranted?

I usually don't go more than $5 - $7/sq ft over the average or over the highest $/sq ft for the immediate neighborhood, unless the house has enough updates or special features to warrant a higher $/sq. ft.